KUALA LUMPUR, Aug 24 2018 : The government has to pay back all the expenses spent to-date by the Armed Forces Fund Board (LTAT) on the Automated Enforcement System (AES) project plus the 12 percent return per annum as agreed by the previous government upon the takeover of AES from LTAT in November 2017.
It would be quite unfair to LTAT if the government decided to only pay back the money used by LTAT to acquire the two companies – ATES Sdn Bhd and Beta Tegap Sdn Bhd – and not the other expenses incurred by LTAT on the AES project, said former chairman of LTAT Admiral (Rtd) Tan Sri Mohd Anwar Mohd Nor in a statement here yesterday.
At the same time, it is also not in line with the concession agreement signed by the two parties, he said referring to the AES that was recently cancelled by the Transport Ministry due to what was deemed as lopsided agreement between the companies and the previous government.
“The flip-flopping of decisions on the AES project by the previous government should not impact the return to LTAT of an investment which was taken with due commercial considerations,” said Mohd Anwar who is also Malaysian Armed Forces Veterans Association president.
He said the LTAT invested in the AES project as it was deemed commercially viable with strong double digit return on investments besides helping to create employment opportunities for armed forces veterans and reducing accidents and fatalities on Malaysian roads.
In 2014, LTAT was invited to take over the AES project from the two companies that was awarded the project initially – ATES Sdn.Bhd and Beta Tegap Sdn.Bhd – and in 2017 the government through the Ministry of Finance decided to take over the project from LTAT by paying back all of of its investment cost plus 12 percent return per annum. – Bernama